THE ROLE OF THE ROLE OF

GOVERNMENT IN GOVERNMENT IN

DEVELOPMENT THE DAIRY DEVELOPMENT THE DAIRY

VALUE CHAIN IN VIETNAMVALUE CHAIN IN VIETNAM

Dr. Do Kim Tuyen

Department of Livestock Production -MARD THAILAND- DEC. 2010

contentscontents

� I. introduction

� II. The role of government in development of dairy value chain

� III. conclusion

I. INTRODUCTIONI. INTRODUCTION

� Why in 2001 Vietnam Government had the

Decision number 167/2001/QD-TTg about

“The Policies and Measures for Dairy Production Development Program of Vietnam from 2001 to 2010 ”

BECAUSEBECAUSE

� Vietnam had a big changed in agricultural

development history from food deficits nation to

the agriculture products export country

� But every year Vietnam imported about 90% of powder milk and dairy products .

� Total value of imported dairy products was 2.5 millions USD in 1990 increase to 50 millions USD in 2000.

� Mean that Vietnam had imported agriculture labors meanwhile Vietnamese farmers were looking for the works for their life

II. The role of government for II. The role of government for

development of dairy value chaindevelopment of dairy value chain(Theo Q(Theo Q§§ 167/2001/Q167/2001/Q§§--TTg)TTg)

� In 2001, Government of Vietnam issued the Decision No. 167/2001/QD-TTg dated 26/10/2001 on “The policies and measures for dairy production development program of Vietnam from 2001 to 2010 ”

1. OBJECTIVES1. OBJECTIVES

� Development of dairy production to meet the local demand of milk consumption,

� Reduce imported milk and dairy products,

� Create the new jobs, increase the economic income for farmers, changing of agriculture economic structure and

� Improve living standard for rural areas.

2. Dairy Development Policies2. Dairy Development Policies

� 1. Government encouraging all organizations, individuals of Vietnamese and foreign companies to invest for dairy farming and dairy breeding

� 2. Provincial authorities have land use planning for dairy farm construction, upgrading of local cattle breed, dairy cross breeding, grasses production and milk collection points.

..Milk Collection Policies..Milk Collection Policies

� 1. Milk collection must base on:

� Dairy development and milk production region

� Convenience to dairy farmer for fresh milk delivery.

� The milk collection and delivered contract must be singed with dairy farmers.

� 2. Ministry of Industry Commercial had annually plan for balancing the local milk production and imported dairy products in order to support local dairy development program

……Credit and Loan policiesCredit and Loan policies

� The investment credit: including central budget and local budget for:

� Improve the local yellow cattle breed by cross with Zebu bulls

� Free supply in semen, liquid Nitrogen and IA kit for dairy cow cross-breeding program.

� Support the subsidize fund about 200,000 VND (10 $ USD) for the new born male dairy calf during first three years of dairy development project.

...Credit and Loan policies...Credit and Loan policies

� Support low loan interest rate for purchasing of dairy cow to the farmers whose got the bank contracted in the first three years of dairy development program.

� Support to dairy farmers with free vaccination cost of epidemic diseases for dairy cattle.

� Loan for constructing of milk collecting system and dairy processing plan according to the support development fund policy by government Minute No. 43/1999/N§-CP.

3. THE MAIN ACHIVEMENTS 3. THE MAIN ACHIVEMENTS

. The number of dairy head and milk production increase fast during last 10 years

THE NUMBER OF DAIRY COW 2001THE NUMBER OF DAIRY COW 2001--2009 2009

SN0YEAR Dairy cow (1000 h)

Increase Rate

(%)

1 2001 41,241 17,89

2 2002 55,848 35,43

3 2003 79,225 41,84

4 2004 95,794 20,92

5 2005 104,120 8,70

6 2006 113,215 8,73

7 2007 98,659 -12,86

8 2008 107,983 9,45

9 2009 115,518 6,98

TOTAL COW & MILK PRODUCTION 2001TOTAL COW & MILK PRODUCTION 2001--20092009

SN.0

YEARDairy cow

(1000 )

Increase Rate

(%)

Milk (1000

tons)

Increase Rate

(%)

1 2001 41,241 17,89 64,703 25,73

2 2002 55,848 35,43 78,453 21,25

3 2003 79,225 41,84 126,697 61,49

4 2004 95,794 20,92 151,314 19,43

5 2005 104,120 8,70 197,679 30,65

6 2006 113,215 8,73 215,953 9,24

7 2007 98,659 -12,86 234,438 8,56

8 2008 107,983 9,45 262,160 11,82

9 2009 114,461 6,00 278,190 6,11

III. conclusionIII. conclusion

� 1. Dairy production development program of Vietnam Government form 2001-2010 had been successful and it meet the local demand of dairy products

� 2. Encourage all the provinces established the dairy development program of their own, create the jobs, increase the economic in come and improve the living standard for dairy farmers.

……CONCLUSIONCONCLUSION

� 3. Dairy production policies had the importance role for changing economic structure in Agriculture production

� 4. The national target on 150,000 dairy cow population and 330,000 tone of fresh milk production to year 2010 is achieved.

� 5. We need the International cooperation and support for dairy development plan of Vietnam for the targets for the year 2020,